Cash Management Best Practices

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					Cash and Check Handling Self Assessment

Proper   cash and check handling procedures can help assure that:
        All the money due the University is received.
        All money collected is properly recorded in the financial systems.
        All money collected is properly and timely deposited.
        Reconciliations and management oversights are conducted to confirm the above.

The following list of questions is designed to help you assess the state of your departmental cash handling procedures and practices.
These guidelines will align your business with NAU’s CMP 307 “Departmental Receipts and Deposits” as well as best practices.
Additionally, these are the types of practices that an auditor would look for when reviewing your operation. The optimal answer to
each of the questions below is “Yes”.

For the purposes of this document, “cash handling” or “revenue” and like terms are used interchangeably to represent university funds
consisting of cash, checks, traveler’s checks, money orders, etc. This document does not cover credit card handling, although many of
the concepts are the same.

If you find many tick marks in the “no” column, now is the time to make a few changes. It may be easier than you think! If you need
help working through process improvements and thinking through alternatives, please feel free to contact the Financial Controls office.
Additional resources such as examples of a mail log, reconciliation worksheet and procedural manuals can be found on the site.

                                                                          YES          NO          N/A          Comments
    Cash and Check Receipt Handling: MAIL
    1. For payments received by mail, is a mail log maintained by
       hand in ink (to prevent alteration) that lists the date of
       receipt, amount of check, etc.?
    2. Is the mail log prepared by someone who does not participate
       in any other aspects of the revenue receipts process?
    3. Are checks stamped with a restrictive endorsement
       immediately upon receipt by the person opening the mail?


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Cash Handling Self Assessment Questionnaire
                                                                         YES          NO          N/A        Comments
    CASH REGISTERS
    4. Are checks stamped with a restrictive endorsement
       immediately upon receipt - by the cashier before putting the
       check in the cash drawer?
    5. Is cash counted and verified when cashiers receive their
       drawers?
    6. Is only one cashier able to access each cash drawer at any
       given time so that cash will at all times be in the possession
       and control of only one person? Are cash drawers assigned to
       one person and not shared across shifts / employees?
    7. Is a receipt given for all transactions?
    8. Are duplicate copies of receipts retained? (ex: register tape)
    9. Are voids, over-rings, etc. reviewed by a manager or a second
       employee? Does that person initial the register tape as proof
       of review?
    10. Is a change fund (this is apart from a petty cash fund) issued
        by the Comptroller’s Office used to make change for
        transactions?
    11. Are cash register summary reports reconciled to the cash
        count at the close of a shift?
    MANUAL RECEIPTS (no cash register)
    12. Are checks stamped with a restrictive endorsement
        immediately upon receipt by the cashier before putting the
        check in the cash drawer?
    13. Are manual receipts issued from a bound book that has pre-
        numbered slips?


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Cash Handling Self Assessment Questionnaire
                                                                         YES          NO          N/A        Comments
    14. Is the original receipt given for all transactions that are
        conducted in person?
    15. Are duplicate copies of receipts retained in the receipt book?
    16. Are receipts issued in sequence?
    17. Are receipt books regularly reviewed for missing receipt
        numbers by someone other than a cashier?
    18. Are all copies of voided pre-numbered manual receipts kept in
        the bound receipt book?
    19. Are cash drawers assigned to one person and not shared
        across shifts / employees?
    20. Is a change fund (this is apart from a petty cash fund) issued
        by the Comptroller’s Office used to make change for
        transactions?
    Cash and Check Deposits
    21. Are receipts deposited promptly? (within 24 hours if total is
        greater than $200, or at least once weekly if total is less)
    22. Are all funds received deposited with no funds being held back
        for change, petty cash, etc.?
    23. Are deposit slips prepared in at least duplicate form? (one
        copy retained in the department, the second copy to the
        Bursar’s Office)
    24. Do you use a either a locking bank bag or a sealing plastic
        tamper proof bag for deposit? (interoffice envelopes are not
        considered tamper proof)
    25. Do two people accompany the departmental deposit from the
        office to the nearest depository?

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Cash Handling Self Assessment Questionnaire
    University and Departmental Policies and Procedures
                                                                            YES          NO          N/A        Comments
    26. Do you perform background checks and fingerprinting on all
        new employees who handle revenue?
    27. Do all personnel who handle revenue have access to, and
        knowledge of, the applicable university policies?
    28. Does the revenue handling area have written departmental
        cash handling policies and procedures?
    Management Oversight and Reconciliation
    29. Are cash funds such as change funds or petty cash
        periodically counted on a surprise basis by an employee from
        outside of the department – such as an auditor, financial
        controls specialist, etc.?
    30. Are all resulting discrepancies investigated and resolved by
        management?
    31. Are all cashier overages and shortage recorded in a log that is
        regularly reviewed by management?
    32. Are cash overages and shortages recorded in the financial
        system?
    33. Does management investigate all substantial variations from
        norms such as cash register voids, no sales, refunds, errors,
        fluctuations in revenue levels, etc.?
    34. Does someone independent of the revenue receipt process
        reconcile receipts records (receipts, mail log, cash register) to
        the deposit slip?
    35. Is this reconciliation regularly reviewed by management?
    36. Are visible indicators of management reviews (such as initials

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Cash Handling Self Assessment Questionnaire
         and dates) evident on reconciliations and other reports?
                                                                      YES          NO          N/A        Comments
    Safeguarding of Assets
    37. Are adequate physical facilities such as a safe or locking
        drawer provided for safeguarding revenue?
    38. Is revenue always safeguarded when unattended – including
        bathroom breaks, etc.?
    39. Are receipt books safeguarded when unattended? Are they
        secured at night away from any funds awaiting deposit?
    40. Are safe combinations and keys to lockboxes restricted to a
        minimum number of employees?




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Cash Handling Self Assessment Questionnaire

				
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